by Mike Sharkey
Staff Writer
For those who find a brand new, 600-channel satellite dish under the tree this Christmas understand that in January you’ll get another present in the mail: a new tax tacked onto that first satellite bill.
For years satellite systems have been exempt from both local and state taxes. Unlike other forms of communications and telecommunications, satellite dish owners enjoyed a rare freedom. No more.
Last year, the Florida State Legislature passed a new law, the Communications Services Tax. The new law is an attempt to simplify the complex structure of taxes on telecommunications, cable, direct-to-home satellites and related services. On Oct. 1, the new tax started appearing on satellite bills, much to the dismay of satellite owners.
“We’ve gotten several calls from folks who are not happy with that,” said Kelly Williams, a legislative aide to State Sen. Jim King.
The law replaces and consolidates several different state and local taxes with a single tax comprised of two parts: the Florida Communications Services Tax and the local communications services tax. The law also shifts the administration of the taxes on communications to the Florida Department of Revenue.
According to Williams, the new tax is not only old news, it was also the responsibility of the satellite dish providers to inform the existing and new customers of the impending tax.
“When the bill was passed in 2000, the satellite companies were required to notify customers they [the taxes] were coming down the pike,” said Williams. “Many of them did not tell their customers anything. They were hit with the increase and had no idea why.”
The new tax law was two years in the making and addresses issues that did not exist when the previous tax law was created.
“Satellite dishes had an FCC [Federal Communications Commission] exemption because they were not an option in the 1980s,” said Williams.
Although satellite owners will see a 13.17 percent tax on their bills, the new law is designed to combine so may other current taxes on other services that eventually the taxes will even out of not drop slightly. Over time, the taxes consumers pay on such services as long distance calls, cable, pagers and beepers and hotel phone charges will all go down. These tax cuts will take time, but according to Williams, they will be worth it.
“That’s the potential hope,” said Williams of a cut in other communications services taxes. “Any change in the tax structure takes time. It may take a few months or even a year. Understandably, there’s some frustration there.”
The 13.17 percent tax is broken down into two components: state and local. The state will get 9.17 percent of the tax while 4 percent will stay in the local communities.
“The revenues generated will go back to the local governments’ coffers,” said Williams. “The whole purpose was simplify all the various and asundery bills. It is a reduction in communications taxes and a new tax only if you have a satellite dish.”
Like any other bit of legislation, the new tax law is complicated and difficult to understand. Williams said anyone with any questions can refer to the Department of Revenue’s web site that can be accessed through myflorida.com.
“It’s [the site] very comprehensive and helpful for the consumer to understand the tax,” said Williams.